Expectations were for the report to show inflation was flat
month-over-month in September and rose 1.6% on a year-over-year
basis.

"Core" inflation, which excludes the cost of food and energy, was
expected to rise 0.1% month-over-month and 1.7%
year-over-year.

The latest inflation report from the BLS showed that the food
index rose 0.3% and five of six major grocery store group indexes
increase, while the energy index fell 0.7% as gas, electricity,
and fuel oil all declined.

In a note to clients following the report, Ian Shepherdson at
Pantheon Macro said, "In one line: Core trend is steady; headline
set for further gas-induced decline in Q4... With core inflation
steady, faster wage gains will be the key Fed trigger."